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How To Grow Your Retirement Savings Safely

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Retirement is a time for enjoying life. You can take trips that you always wanted to take or stay home with the kids after school is out. However, this is only possible if you have retirement savings. Many people don’t know exactly how their retirement savings are growing until it’s too late. Don’t wait till it’s too late. Here are safe ways to grow your retirement savings. 

Continue reading How To Grow Your Retirement Savings Safely

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Hillary Clinton Is Whitewashing the Financial Catastrophe


She has a plan that she claims will reform Wall Street—but she’s deflecting responsibility from old friends and donors in the industry.


William Greider

DECEMBER 11, 2015

Hillary Clinton’s recent op-ed in The New York Times, “How I’d Rein In Wall Street,” was intended to reassure nervous Democrats who fear she is still in thrall to those mega-bankers of New York who crashed the American economy. Clinton’s brisk recital of plausible reform ideas might convince wishful thinkers who are not familiar with the complexities of banking. But informed skeptics, myself included, see a disturbing message in her argument that ought to alarm innocent supporters.

Candidate Clinton is essentially whitewashing the financial catastrophe. She has produced a clumsy rewrite of what caused the 2008 collapse, one that conveniently leaves her husband out of the story. He was the president who legislated the predicate for Wall Street’s meltdown. Hillary Clinton’s redefinition of the reform problem deflects the blame from Wall Street’s most powerful institutions, like JPMorgan Chase and Goldman Sachs, and instead fingers less celebrated players that failed. In roundabout fashion, Hillary Clinton sounds like she is assuring old friends and donors in the financial sector that, if she becomes president, she will not come after them.

The seminal event that sowed financial disaster was the repeal of the New Deal’s Glass-Steagall Act of 1933, which had separated banking into different realms: investment banks, which organize capital investors for risk-taking ventures; and deposit-holding banks, which serve people as borrowers and lenders. That law’s repeal, a great victory for Wall Street, was delivered by Bill Clinton in 1999, assisted by the Federal Reserve and the financial sector’s armies of lobbyists. The “universal banking model” was saluted as a modernizing reform that liberated traditional banks to participate directly and indirectly in long-prohibited and vastly more profitable risk-taking.

Exotic financial instruments like derivatives and credit-default swaps flourished, enabling old-line bankers to share in the fun and profit on an awesome scale. The banks invented “guarantees” against loss and sold them to both companies and market players. The fast-expanding financial sector claimed a larger and larger share of the economy (and still does) at the expense of the real economy of producers and consumers. The interconnectedness across market sectors created the illusion of safety. When illusions failed, these connected guarantees became the dragnet that drove panic in every direction. Ultimately, the federal government had to rescue everyone, foreign and domestic, to stop the bleeding.

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High cost of Dodd-Frank is harming US banks and citizens

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By John Alan James

On the fifth anniversary of the signing of the Wall Street Reform and Consumer Protection Act, Rep. Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee, and a panel of regulatory experts gathered at an American Enterprise Institute meeting to discuss the impact of the legislation on America’s economic system.

Hensarling has been successful in finding bi-partisan support in modifying some financial regulations, particularly where federal courts have contended that regulators have failed to prove the benefits of the suggested remedies. But in his recent speech at the Institute, he made it clear that his ultimate goal is the repeal of the Dodd-Frank Act.

Fines and legal fees paid by financial institutions have risen dramatically in the past five years. Violations of regulations covering money laundering and sanctions have been extremely costly to banks, with penalties negatively impacting balance sheets and shareholders’ equity.

The Dodd-Frank Act has expanded the role and power of the federal government in corporate affairs and created a new and growing need for compliance risk management. The job of chief compliance officer, responsible for the implementation of internal and external governance policies and procedures, has grown from a clerical position to a new type of professional often reporting directly to the board and primarily responsible to the chief executiv

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Citigroup Fails Fed’s Stress Test as BofA Gets Dividend Boost


Citigroup Fails Fed’s Stress Test as BofA Gets Dividend Boost

By Michael J. Moore and Elizabeth Dexheimer  Mar 27, 2014 12:00 AM ET

Citigroup Inc.’s capital plan was among five that failed Federal Reserve stress tests, while Bank of America Corp. won approval for its first dividend increase since the financial crisis.

Lenders announced more than $60 billion of dividends and stock buybacks after the Fed approved capital plans for 25 of the 30 banks in its annual exam. Citigroup, as well as U.S. units of Royal Bank of Scotland Group Plc, HSBC Holdings Plc and Banco Santander SA, failed because of concerns about the quality of their processes, the central bank said yesterday in a statement. Zions Bancorporation failed after its capital fell below Fed minimums in a simulation of a severe economic slump.

The results show lenders may still face obstacles to boosting dividends and buybacks even as regulators say the firms have doubled their capital since the first public stress test in 2009. The Fed is increasing scrutiny of the industry’s controls and planning processes as concerns about capital levels wane.